What is an offer? This word is often found in legal and financial fields. However, not all people know and understand what this term really means and when it is appropriate to use it.
In this article we will tell you what is meant by an offer, as well as give clear examples.
What does offer mean
An offer is an official offer preceding the conclusion of the contract, which sets out the terms of the transaction, addressed to the second party. If the recipient (addressee) accepts the offer (agrees), then this means the conclusion between the parties of the proposed agreement on the terms agreed in the offer.
It should be noted that the offer can be written or oral. Translated from Latin, the word "offer" is translated as - I offer.
What is an offer, and what are its differences from a contract
In simple terms, an offer is a kind of invitation to a person or a group of people to cooperate, which may entail the conclusion of a deal.
For example, you and your neighbors decided to make repairs in the entrance. If they agree to your offer, you conclude an oral agreement with them on the basis of the conditions that were described in the offer. Likewise, a written agreement can be made if desired.
Thus, an offer is like a pre-contract, i.e. a preliminary description of one of the parties (she is called the offeror) of the conditions under which a transaction can be concluded with the second party (she is called the acceptor). For this reason, the contract and the offer cannot be considered identical legal acts.
There are also concepts such as a firm and irrevocable offer. With a firm offer, for example, they can provide you with a loan from a bank, with specific conditions that you will not be entitled to change, but at the same time you can refuse the transaction.
An irrevocable offeror means that the offeror does not have the right to withdraw from the terms of the contract under any circumstances. Often this option is used in the process of liquidation of bankrupt companies.
There is also such a thing as a free offer. It is offered to several buyers by the seller for the purpose of getting them acquainted with the market.
